US oil futures backwardation narrows to 20-month low on mounting fears of a glut

Core Viewpoint - Front-month U.S. crude oil futures have reached their smallest premium over the seventh-month contract since January 2024, indicating a shift in market dynamics due to increased supply from OPEC+ and seasonal refinery maintenance in the U.S. impacting demand for immediate barrels [1] Group 1 - OPEC+ is ramping up supply, contributing to the changes in crude oil futures pricing [1] - Seasonal refinery maintenance in the U.S. is putting pressure on the demand for prompt barrels, affecting market conditions [1] - The current market situation reflects a significant shift, with the premium for front-month contracts decreasing [1]